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Environmental Accounting Practices, Social Responsibility Disclosures and Firm Value; Evidence from listed Oil and Gas Firms in Nigeria

Obiora Fabian. Ph.D, Onuora, J. K. J. Ph.D, & Okoye Obianuju, C

Abstract

This study empirically investigated the impact of environmental accounting practice and social responsibility disclosures on value of Oil and Gas Firms in Nigeria. The study is vital as it portrays the extent to which environmental accounting practice and social responsibility influence firms’ value. In order to determine the relationship between environmental accounting practice, social responsibility disclosures and firms’ value, environmental accounting practice and social responsibility disclosure was measured using the GRI G4 on content index while firms’ value on the other hand was represented by net assets per share (NAPS). Two hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using OLS regression model operated with STATA V.15. Ex Post Facto design was adopted and data for the study were obtained from the published annual financial reports of the entire oil and gas firms quoted on Nigerian Exchange Group (NGX) with data spanning from 2016 -2020. The findings of the study generally indicate that environmental accounting practice & social responsibility disclosures have significant and positive influence on firms’ value measured by net assets per share (NAPS) at 1% significant level. Thus, the study concludes that environmental accounting practice & social responsibility disclosure positively improved firms’ performance over the years. The study however suggest that government should make environmental reporting in annual reports compulsory since most organization hardly report their environmental activities in their report; also, tax credit should be given to organizations that comply with its environmental laws of the land which encourage s environmental reporting.

Keywords

Environmental Accounting Practice; Social Responsibility Disclosure; Firm Value; Net Assets Per Share

References

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